At the time of writing, the ASX gold stock is up 18% to 26.5 cents.

This means that its shares are now up over 100% week to date.

Why is the ASX gold stock on fire this week?

Investors have been scrambling to buy this gold miner's shares this week after the company received and accepted a takeover approach from Genesis Minerals Ltd (ASX: GMD).

According to the release, the two parties have entered into a binding bid implementation deed (BID) under which Genesis Minerals will acquire the remaining shares it doesn't already own (~20%) in Dacian Gold by way of a recommended conditional off-market takeover offer.

The ASX gold stock's shareholders will receive 0.1685 new Genesis shares for every 1 Dacian share held, which implied a value of 23.5 cents per share at the time.

However, with the Genesis Minerals share price rising this week and now fetching $1.44, the offer equates to 24.3 cents per share.

So why are its shares trading above this?

That's because Genesis Minerals is so keen to get the deal over the line that it is offering 0.1935 Genesis shares per Dacian Gold share if it can acquire a relevant interest of not less than 95.1% during the offer period of approximately one month.

The offer of 0.1935 Genesis shares per Dacian share equates to 27.86 cents per share at current levels.

Why is Genesis wanting to acquire Dacian Gold?

The release notes that Genesis Minerals considers this a logical transaction to simplify the ownership of large-scale resources, reserves and milling infrastructure in the world-class Leonora District.

Genesis Managing Director, Raleigh Finlayson, said:

The acquisition of the remaining ~20% of Dacian is a logical step to simplify the ownership of an enviable position in the Leonora District – 15Moz of combined Resources, 3.9Moz of combined Reserves and 4.3Mtpa of combined milling capacity.

The post Guess which ASX gold stock is up 100% in 2 days! appeared first on The Motley Fool Australia.

The sector has been one of the few areas of the market where ASX shares are actually making gains.

Here we look at the three best-performing ASX resources shares of the S&P/ASX All Ordinaries Index (ASX: XAO) in October, according to data from Capital IQ.

We've narrowed this list down to companies with a market capitalisation above $100 million.

My Fool colleague Tristan has reported separately on the biggest movers of the S&P/ASX 200 Index (ASX: XJO) mining shares for the month.

So, let's canvas the smaller players and see what's happening.

Tietto Minerals Ltd (ASX: TIE)

This ASX resources share simply killed it during October on the back of a lot of good company news. The Tietto share price went up by 60.9% over the 31 days of the month. On Friday, it closed the session at 72 cents, up 5.15% for the day.

Tietto is a gold miner with activities focused in West Africa. It has a market capitalisation of $734 million.

During the month, the company provided a positive update on its Abujar Gold Project on the Ivory Coast. As my Fool colleague James reported, construction is on track and Tietto expects to deliver its first gold this quarter. The developer is expecting to produce 260,000 ounces of gold at Abujar in 2023.

Later in the month, Tietto reported new assay results showing more high-grade gold discoveries at Abujar. On the final day of the month, Tietto revealed its quarterly activities and cash flow report. It finished the September quarter with $87.7 million in cash and cash equivalents and no debt.

Dacian Gold Ltd (ASX: DCN)

The next best-performing ASX resources share of October was Dacian Gold. Its share price went up by 53.8%. On Friday, Dacian shares closed the session at 14 cents, down 3.33% for the day.

Dacian is a gold explorer with activities at the Mount Morgans Gold Project in Western Australia. It has a market capitalisation of $182.5 million.

On 10 October, the company reported continuing "strong exploration results" at the project's Jupiter mine. Over the next few days, the Dacian share price rose by 40% on the back of the news.

Management said: "The … drilling results confirm the potential for significant extension of mineralisation associated with the syenite intrusive system at the Mt Morgans Gold Operation. These strong mineral resource definition and extension drilling results at Jupiter continue to support the potential for increased scale of future operations at Mt Morgans."

Syrah Resources Ltd (ASX: SYR)

Third on our list of top-performing ASX resources shares in October is Syrah Resources. Its share price went up by 45.7%. On Friday, the Syrah Resources share price finished up 4.08% to $2.55.

Syrah is mainly focused on natural flake graphite production at its mine in Mozambique. It has a market capitalisation of $1.64 billion.

The company had some big news for ASX investors during the month. As my colleague James reported, Dacian won a US Government grant of up to US$220 million and announced an offtake agreement. Syrah also lodged its quarterly activities report, revealing 38kt of graphite production at an 80% recovery rate during Q2 FY22. The miner shipped a record 55kt at a weighted average sales price of US$688 per tonne. This was a quarter-over-quarter bump of 25% and 3.9%, respectively.

The post Top 3 rising ASX resources shares in October appeared first on The Motley Fool Australia.

The gold miner's shares have lost 40% during midday trade to a new 52-week low of 10.2 cents apiece.

For context, the All Ordinaries Index (ASX: XAO) is down 2.32% to 6,626.5 points following heavy losses on Wall Street overnight.

What's happened to Dacian shares?

Investors are fleeing the Dacian share price after the company delivered an update regarding its Mt Morgans operations.

In its release, Dacian advised the operating environment has rapidly changed over the last 6 months. This comes after significant inflationary cost pressures have impacted the business leading to an uptick in Dacian's cost base.

As such, the management has been forced to conduct a review of its operating strategy with the following decisions made:

• Open pit mining operations at Jupiter to be suspended by the end of this month
• Underground operations to continue until the previously developed stopes have been mined in Q1 FY23
• Open pit mining at Hub at Redcliffe to commence later in FY23 following receipt of mining approvals
• Processing of existing stockpiles totalling roughly 5 million tonnes will begin in Q1 FY23
• Drill testing to focus on high-priority exploration targets at Jupiter throughout FY23

Overseeing the change, Dacian general manager for geology and exploration, Dale Richards, has been appointed as CEO.

This follows outgoing managing director, Leigh Junk's resignation after spending 3 years with the company.

Dacian non-executive chair, Mick Wilkes commented:

In light of the current high inflationary environment, the Board has taken the decision to reset the company strategy by discontinuing the current open pit mining operations at Mt Morgans.

In doing so we are pivoting to exploration and a focus on the significant potential we see beneath and alongside the Jupiter open pits. This along with the strategic value of our processing facilities and infrastructure in the Laverton Leanora gold belt underpins the company.

Dacian is forecasting cash and gold-on-hand of approximately $17 million at 30 June after a $12.75 million bank debt repayment. 

Dacian share price snapshot

It has been a rollercoaster ride for the Dacian share price, with large volatile swings over the past 12 months.

Adding to today's losses, the company's shares are down 60% since this time last year. This is a big difference to when its shares touched a 52-week high of 32 cents in mid-April.

On valuation grounds, Dacian presides a market capitalisation of roughly $184.46 million.

The post Why did this ASX gold share just crater 40%? appeared first on The Motley Fool Australia.

In fact, you've got to go back to April 2020 to see ASX gold shares deliver stronger monthly gains.

And that, as you'll recall, was the month when most all stocks came roaring back following the previous month's pandemic-fuelled panic selling.

How well did ASX gold shares perform in February?

The best answer to that question lies in the S&P/ASX All Ordinaries Gold Index (ASX: XGD).

From the closing bell on 31 January through to the closing bell on 28 February, the ASX gold index gained a whopping 18.2%.

To put that into some context, the All Ordinaries Index (ASX: XAO) was only up 0.8% in that same period.

What drove the outperformance?

Investors began snapping up ASX gold shares over the course of the month as the price of the bullion they explore for and mine from the earth surged.

The yellow metal kicked off February trading at US$1,801 (AU$2,467) per troy ounce. Gold finished the month at US$1,914 per ounce, up 6.3%, according to data from Bloomberg.

Gold prices had already been trending upwards for most of 2022, as inflation fears began to tick up around the globe. Gold is classically seen as a hedge in times of fast rising costs.

But February saw gold prices really lift as Russian forces began to mass around Ukraine. When Russia invaded its neighbour towards the end of the month, investors seeking haven assets sent the price of gold higher.

Some leading ASX gold shares

Here's how some leading Aussie gold producers performed in February.

S&P/ASX 200 Index (ASX: XJO) mining giant Newcrest Mining Ltd (ASX: NCM) saw its shares surge 19.1%.

Fellow ASX 200 gold miner, Evolution Mining Ltd (ASX:EVN), also boomed. The Evolution share price gained 22% for the month.

Sticking with the big players, the Northern Star Resources Ltd (ASX: NST) share price rocketed an impressive 24.4% in February.

Moving to the smaller end of the mining spectrum, with a market cap of $228 million, Dacian Gold Ltd (ASX: DCN) shares lifted 16.7%.

And topping the best returns for ASX gold shares in February is Alkane Resources Limited (ASX: ALK). The gold miner saw its share price leap 26.8% last month.

The post Here's why ASX gold shares just had their best month in 2 years appeared first on The Motley Fool Australia.

Dacian shares were on the move today after the company released its quarterly earnings and activities report.

Here are the details.

Dacian share price slides as production in line with guidance

Dacian outlined a number of investment highlights from the quarter, including:

• September quarter production of 15,819oz, in line with 2H weighted guidance, but down 38% quarter on quarter.
• All-in sustaining cost (AISC) of $2,362/oz, up from $1,742/ounce from last quarter
• Cash and gold on hand at 30 September 2021 of $33.2 million, 38% behind the quarter prior
• Total debt of $16.0 million following refinancing of project debt facility
• Total forward hedge position reduced to 13,410oz at an average gold price of $2,236/oz

What happened this quarter for Dacian Gold?

Although the company came in with gold production that was largely in line with guidance for its second half, "September quarter production was slightly lower than planned".

In fact, total production came in around 40% behind the previous quarter at almost 15,820 ounces, down from 25,558 ounces.

Dacian also realised these gold sales on an AISC of $2,362, a 36% increase from last quarter. The company explained that the higher AISC came from the "lower production for the quarter, and is forecast to reduce in line with the increasing production for the remainder of the financial year".

The company wasn't immune to the effects of the pandemic either, as 'labour scarcity' had an impact on its open-pit mining rates.

It also had an effect on the recently appointed underground mining contractor's workforce, thereby hindering operations this quarter.

Aside from this, the company milled a total of 686,671 tonnes of ore at an average feed grade of 0.79g/t gold, containing 17,343 ounces.

Dacian also left the quarter with cash and gold bullion on hand of $33.2 million, which is a 21% decrease from last quarter's balance of $41.8 million.

What did management say?

Speaking on the announcement, Dacian managing director Leigh Junk said:

The tight labour market conditions continue to be a headwind for the Western Australian mining industry including our operations, however despite challenges our plan for the full year remains achievable. Our ongoing exploration investment is demonstrating the prospectivity of our land position with the recent success beneath the Jupiter open pit highlighting the potential for growth to our operations.

What's next for Dacian Gold

Production guidance of FY22 is for 100,000–110,000 ounces, on an AISC of $1,550–$1,7000 per ounce.

The company notes that "as previously guided, production remains weighed to the 2H of FY22"

FY22 also is set to see a "tiered quarter on quarter production profile over the financial year due to accessing significant ore from the shallow dipping Cornwall Shear Zone" at its Doublejay open-pit mine.

In addition, the final stage of development at Doublejay continues, "producing high-grade ore in earnest during FY2023–FY2024"

It's been more than a difficult year to date for the Dacian Gold share price, having posted a loss of over 45% since January 1.

This extends its loss over the last 12 months to 37%, well behind the benchmark S&P/AX 200 index (ASX: XJO)'s return of around 25% in the same time.

The post Why did the Dacian Gold (ASX:DCN) share price fall on Friday? appeared first on The Motley Fool Australia.

Gold prices, meanwhile, edged up overnight to US$1,793 per troy ounce.

Below we take a look at the ASX gold explorer's latest drill results that look to be driving investor interest.

What gold results were reported?

The Dacian Gold share price is surging after the company reported promising gold drilling results at the Heffernans and Ganymede open pits at its Mt Morgans Gold Operation, located in Western Australia.

According to this morning's release, the drill campaign intersected mineralisation at depth in the Jupiter syenite intrusive system, "at the limit of, and below the Mineral Resource estimate".

Dacian reported that drilling beneath its Heffernans open pit intersected 102.9 meters at 1.4 grams of gold per tonne from 436.3 metres, including 14.7m at 7.2g/t from 468 metres.

Meanwhile, drilling below its Ganymede open pit intersected 44.5m @ 1.1g/t from 247.1m, including:

• 3m @ 1.4g/t Au from 247.1m
• 2m @ 1.0g/t Au from 269.5m

Commenting on the results, Dacian's managing director Leigh Junk said:

These results demonstrate extensions to mineralisation below our active mining areas which can have high-grade and significant width. The Jupiter complex represents a compelling exploration target, and the potential to extend our current operations located adjacent to our processing plant is extremely exciting. This success follows a disciplined, systematic approach by our exploration team.

The first 4 holes of the drill program at Heffernans and Ganymede are now completed. And Dacian reported it has a follow up drilling program already underway at Heffernans, with 7 more holes planned to test extensions of the intersection.

Dacian Gold share price snapshot

The Dacian Gold share price has struggled this year, down 48% so far in 2021. By comparison the All Ordinaries Index (ASX: XAO) is up 12% year-to-date.

Over the past month, Dacian Gold's shares have gained 14%.

The post Why the Dacian Gold (ASX:DCN) share price is leaping 9% today appeared first on The Motley Fool Australia.

Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:

Computershare Ltd (ASX: CPU)

According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this share registry company's shares to $15.00. Citi has downgraded its earnings estimates for Computershare to reflect a tough near term outlook and margin income weakness. It also has concerns that its guidance for FY 2022 could disappointment the market and weigh on its shares. The Computershare share price ended the week at $16.14.

Dacian Gold Ltd (ASX: DCN)

A note out of Macquarie reveals that its analysts have downgraded this gold miner's shares to an underperform rating with a reduced price target of 28 cents. This follows a disappointing end to FY 2021, which led to Dacian Gold falling short of its guidance. But perhaps the biggest disappointment was the company's capital expenditure guidance for Mt Morgans, which was significantly greater than Macquarie was anticipating. The Dacian Gold share price ended the week at 31 cents.

Wesfarmers Ltd (ASX: WES)

Another note out of Citi reveals that its analysts have retained their sell rating and $45.00 price target on this conglomerate's shares. According to the note, the broker was expecting Wesfarmers to use its excess capital for acquisitions. However, it sees few synergies from its potential acquisition of Australian Pharmaceutical Industries Ltd (ASX: API). And while it sees the acquisition as a way to boost its post-pandemic growth, it feels it will need to make further investments to realise this. The Wesfarmers share price was fetching $59.12 at the end of the week.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

Earlier, the Dacian Gold share price was down 8%. At the time of writing, shares in the gold producer and explorer have recovered slightly but are still down 4.84% to 30 cents.

Why the Dacian Gold share price is sliding

The Dacian Gold share price has been pushed lower this morning as investors respond to its quarterly activities report.

At the time of writing, approximately 7 million shares have traded hands. To add some perspective, its 10 day average volume is approximately 2.5 million.

According to the release, Dacian Gold produced 25,558 oz of gold in the June quarter, at an all in sustaining cost (AISC) of $1,742/oz.

The company's total FY21 production came in at 106,919 oz at an AISC of $1,552/oz.

The Dacian Gold share price might be responding negatively to the fact that these operational figures missed the company's full year guidance of 110,000 to 120,000 oz at an AISC of $1,400 to $1,550/oz.

Looking ahead

Dacian Gold is targeting FY22 production guidance of 100,000 to 110,000 oz at an ASIC of $1,550 to $1,700/oz.

The company said that it is "embarking on a significant growth investment … for the long term", allocating $20.4 million to exploration and $66.5 million to project development.

According to the announcement, an update regarding life-of-mine for Mt Morgans and the Redcliffe project is on track for release later in the September quarter.

What did management say?

Dacian Gold Managing Director, Leigh Junk commented on the result, saying:

Whilst we delivered a robust production result for FY2021, we did fall slightly short of our planned target for the quarter. Dacian has had a significant year nonetheless with the acquisition of Redcliffe, further reductions in our debt and hedge positions, completion of over 160,000 m of exploration and resource definition drilling and re-positioning our exploration strategy towards making the next generation of discoveries, all contributing to our growth-focused endeavors ahead in FY2022.

We are keen to soon reintroduce high-grade ore from the Westralia mine area into our production profile and are busy working towards developing the Redcliffe project into production. Our upcoming life-of-mine plan will be the Company's first opportunity to bring all these projects into a base case mine plan for our Laverton operations and we look forward to completing that work this quarter.

About the Dacian Gold share price

The Dacian Gold share price has tumbled 36% year-to-date, hitting a 2-year low of 25.5 cents on 30 June.

However, it isn't just Dacian Gold that's struggling.

Household ASX gold shares such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) have also slumped this year, down 19% and 7.2% this year.

The post Dacian Gold (ASX:DCN) share price down 8% on quarterly activities report appeared first on The Motley Fool Australia.

During afternoon trading, the gold miner's shares are down 4.92% to 29 cents. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.38% at 7,359 points.

Details of the placement

Investors are fleeing today as the company is set to add more shares to its registry, diluting shareholder value.

According to its announcement, Dacian advised it has successfully completed its fully underwritten two-tranche institutional placement of $40 million. The offer received strong support from both existing and new domestic and international investors.

The placement sees approximately 142.9 million ordinary shares issued at a price of 28 cents apiece.

The funds raised will be put towards a number of company initiatives to drive its growth strategy. These include:

• Accelerating a 300-kilometre drill program across Mt Morgans and Redcliffe, targeting new base load opportunities
• Advancing the high-grade Redcliffe deposits into production
• Re-starting underground production from the Greater Westralia Mining Area
• Funding general working capital.

Dacian managing director Leigh Junk commented:

We are very pleased with the equity raising result and thank our existing shareholders for their ongoing support and welcome the new shareholders to the register. Dacian looks forward to pursuing its three-pillar growth strategy, focused on exploration success and advancing further deposits into production.

In addition to the completed placement, Dacian launched a Share Purchase Plan (SPP) for eligible investors. The SPP will be offered on the same terms as the placement, and will seek to raise $5 million.

About the Dacian share price

It has been a rollercoaster ride for Dacian shareholders. The Dacian share price hit a 52-week high of 56.5 cents in early January following positive results from its phase 2 drilling campaign at McKenzie Well, but its shares have lost more than 36% year to date.

At the current share price, Dacian has a market capitalisation of roughly $235 million, with around 811 million shares outstanding.

The post Why the Dacian Gold (ASX:DCN) share price is sliding 5% today appeared first on The Motley Fool Australia.

Dacian Gold runs its flagship Mt Morgans open-pit gold operation near Laverton, Western Australia, and this year acquired the Redcliffe Gold project in WA. The company believes this prospect provides it with an attractive land position to pursue new discoveries.

Dacian Gold announces capital raising to drive growth

The company today announced a $40 million institutional placement at 28 cents per share. This represents an 11% discount to its last closing price of $31.5 cents per share on Tuesday. Investors will be eyeing the Dacian Gold share price when it resumes trading to see how its shares are impacted by the capital raising discount.

Dacian Gold believes FY21 has established the foundations for the company to accelerate gold production and growth opportunities.

Its capital raising presentation highlighted FY21 achievements including investments in open pit operations to drive towards its 110,000 to 120,000 oz production at an all-in sustained cost (AISC) of $1,400 to $1,550 at Mt Morgans. The company has also increased its regional presence at its Redcliffe project, with exploration activities adding 679,000 oz of high-grade mineral resource.

With the $40 million raised, Dacian Gold intends to allocate $20 million to accelerate a significant exploration investment across both Mt Morgans and Redcliffe. This includes approximately 300,000 metres of air core, diamond core and reverse circulation drilling. The drill program will help the company cover a significant area of its underexplored southern tenements.

The company will allocate $10 million to push its discoveries around Mt Morgans, otherwise known as its Greater Westralia Mining Area, into production.

Another $10 million will be allocated to advance its prospective Redcliffe into preliminary production. This will include the completion of mining studies, site establishment and initial pre-stripping activities.

The Dacian Gold share price so far

The Dacian Gold share price fell off a cliff in 2020 after it announced a capital raising on 14 April to "recapitalise" the company. Its shares fell a sharp 59% from $1.045 to 42.5 cents on the day.

Its shares haven't been able to retest its previous highs so far, chopping between lows of 30 cents and highs of 55 cents.

The post Why is the Dacian Gold (ASX:DCN) share price frozen today? appeared first on The Motley Fool Australia.

Why is the Dacian Gold share price slumping?

The big news today was Dacian's latest production and activities numbers. Dacian reported March quarter production of 21,400 ounces of gold at an all-in sustaining cost (AISC) of $1,874 per ounce. Those numbers came from the Mt Morgans Gold Operation (MMGO) output with year to date production of 81,361 ounces.

Managing Director Leigh Junk said, "While we were anticipating that production for the March quarter would be our lowest for the financial year, the result was below expectations".  The disappointing result came as material movement productivities were below expectations due to operator shortages amid a tighter Western Australian labour market.

The Dacian Gold share price has tumbled lower on the back of this morning's disappointing quarterly update. That's despite Dacian maintaining FY2021 guidance of 110,000 to 120,000 ounces at an AISC of $1,400 to $1,550 per ounce.

The Aussie miner reported cash and gold on hand of $28.3 million at the quarter end having repaid $2.0 million of debt during the quarter.

Dacian completed more than 30,000 metres of exploration and resource definition drilling during the quarter. Mineral Resource estimation is underway across its Jupiter, Westralia, Mt Marven and Redcliffe mining areas.

Dacian also said Ore Reserve estimation activities are underway ahead of an updated Life-Of-Mine plan due in the September quarter.

Foolish takeaway

Investors have smashed the Dacian Gold share price on the back of this morning's quarterly miss. Shares in the gold miner slumped more than 5% at the open in a tough week for ASX gold shares.

The St Barbara Ltd (ASX: SBM) share price was smashed on Wednesday after a disappointing quarterly result for the major Aussie producer.

The post The Dacian Gold (ASX:DCN) share price has slumped 5%. Here's why. appeared first on The Motley Fool Australia.

Why is the Dacian Gold share price slumping today?

Dacian reported a strong net cash position for the quarter ended 31 December 2020 (Q2 FY2021). The Aussie gold miner produced 27,162 ounces of gold at an all-in sustaining cost (AISC) of $1,430 per ounce in the December quarter.

The mining group reported first half production of 59,961 ounces at an AISC of $1,356 per ounce. That means Dacian is on target to meet its full year guidance of 110,000 to 120,000 ounces at an AISC of $1,400 to $1,550 per ounce.

The Dacian Gold share price slumped lower in early trade following the update as gold prices retreated from a nearly two-week high. Today's update comes after strong quarterly results from competitors Northern Star Resources Ltd (ASX: NST) and Saracen Mineral Holdings Limited (ASX: SAR) were also released this week.

Both the Saracen and Northern Star share prices jumped higher in early trade before retreating to below their opening prices.

Dacian reported cash and gold on hand at 31 December 2020 of $37.9 million. Total debt was $23.4 million after repaying $15.7 million in the quarter. That gave Dacian a net cash position of $14.5 million, a $15.1 million quarter-on-quarter improvement.

A new merger announcement, which came on 16 November 2020, was the big news for Dacian during the quarter. Dacian announced an all-scrip merger with NTM Gold Ltd (ASX: NTM) which saw the NTM share price rocket 44% higher. The $96.4 million merger is set to close in mid-March 2021 with the aim of creating a $285 million gold company.

Dacian Managing Director Leigh Junk said it was a "robust" result that has "significantly improved" the financial position for the company. Mr Junk said a stronger balance sheet and the merger will help Dacian to "explore regional consolidation" and leverage its significant infrastructure in the Laverton goldfields in Western Australia.

Foolish takeaway

The Dacian Gold share price slumped lower in early trade before paring back some of those losses in the late morning. That's despite a solid quarterly update that confirmed Dacian was on track to meet its full-year guidance as gold prices edged lower.

The S&P/ASX 200 Index (ASX: XJO) has edged 0.2% lower to 6,804.50 points at the time of writing.

The post Dacian Gold (ASX:DCN) share price falls despite solid update appeared first on The Motley Fool Australia.

Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:

ASX Ltd (ASX: ASX)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $68.54 price target on this stock exchange operator's shares. This follows the release of a mixed update for the month of December and calendar year 2020. While the broker feels recent weakness in its share price means that risks are now being more appropriately reflected, its shares have not fallen enough for a change of rating. The broker still feels they are overvalued at the current level. The ASX share price ended the week at $72.75.

Dacian Gold Ltd (ASX: DCN)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and 34 cents price target on this gold miner's shares. The broker notes that Dacian Gold outperformed its expectations in the December quarter despite facing some operational disruptions. However, due to the broker's subdued outlook for the gold price, it isn't in a rush to make any changes to its recommendation. The Dacian Gold share price last traded at 54 cents.

Medibank Private Ltd (ASX: MPL)

Another note out of Macquarie reveals that its analysts have downgraded this private health insurer's shares to an underperform rating with an improved price target of $2.70. The broker expects 2021 to be a tough year for health insurance providers due to structural pressures. The broker notes that a sizeable catch up in claims is coming post-pandemic, which it feels could weigh on earnings. As such, it has cut its forecasts accordingly. The Medibank share price ended the week at $3.01.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

Here are some of the highlights from the ASX:

Nick Scali Limited (ASX: NCK)

The Nick Scali share price went up by around 6.3% after upgrading its profit guidance for the first half of FY21 again.

Unaudited net profit after tax for the six months to 31 December 2020 is expected to be $40.5 million, which is up approximately 100% compared to the underlying profit of the prior corresponding period. This was due to better than previously anticipated container availability during the months of November and December leading to increased delivery volumes.

A couple of months ago Nick Scali provided a trading update on 26 October 2020 showing that total written sales orders for the first quarter of FY21 grew by 45%.

In the second quarter of FY21 Nick Scali achieved growth of 58%, which was driven by the reopening of the Melbourne metropolitan stores as well as a successful Black November campaign across both the online and in-store channels.

Total written sales orders for the six months to 31 December 2020 exceeded delivered sales by approximately $20 million according to the company due to exceptional growth in written sales orders during the second quarter. Management said that the sales order book was at an all-time high at 31 December 2020 and this is expected to translate to material revenue and profit growth in the second half of the financial year, subject to there being no further disruption to the store network or supply chain.

During the month of November, Nick Scali opened new stores in Wairau Park in Auckland, New Zealand and Bennetts Green in NSW which have both performed strongly and are expected to contribute to profit in the second half of FY21 as written sales orders convert to revenue. Despite the entire store network being reopened at the end of October, sales made through digital channels continued to growing during the second quarter of FY21.

Ramelius Resources Limited (ASX: RMS)

ASX 200 gold miner Ramelius Resources saw its share price rise by 3.6% today after announcing the production for the three months to December 2020.

Ramelius Resources' guidance for quarterly gold production had been 67,000 ounces to 72,000 ounces. It achieved 72,896 ounces of production. This was split with 43,055 ounces of production from Mt Magnet (including Vivien) and 29,841 ounces from Edna May (including Marda).

Half-year gold production guidance had been 132,000 ounces to 142,000 ounces. It achieved half-year production of 144,240 ounces.

Management said that it finished the quarter with $221.5 million of cash and gold on hand. Debt reduced to $8.1 million at the end of the quarter. It ended with a net cash position of $213.4 million.

Ramelius Resources said that it continues to deliver gold into its forward sales book as the current schedule requires, with a quarter end position of 229,750 ounces at an average price of AU$2,288 per ounce.

Dacian Gold Ltd (ASX: DCN)

The Dacian Gold share price dropped 1% after announcing its preliminary December update.

For the quarter ending 31 December 2020, it achieved production of 27,162 ounces and year to date production of 59,961 ounces. This production is "tracking well" for its guidance of 110,000 ounces to 120,000 ounces.

During the latest quarter the company repaid $15.7 million in debt during the quarter, with total debt now standing at $23.4 million.

Cash and gold on hand at 31 December 2020 was $37.9 million for a net cash and gold position of $14.5 million. This was a $15.1 million improvement from 30 September 2020.

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Four shares that have fallen more than most today are listed below. Here's why they are dropping lower:

Dacian Gold Ltd (ASX: DCN)

The Dacian Gold share price is down over 1% to 45.5 cents following the release of its quarterly update. The gold miner appears to have disappointed investors with its second quarter production of 27,162 ounces. This is down from 32,799 ounces in the first quarter. Though, despite this, Dacian remains on course to achieve its full year production guidance of 110,000 ounces to 120,000 ounces.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price has fallen 3.5% to $11.19. Investors have been selling the fashion jewellery retailer's shares after it revealed that its UK stores would be closing temporarily because of COVID-19. All 42 UK stores have been closed until further notice. All other stores and its online business remain open.

MyFiziq Ltd (ASX: MYQ)

The MyFiziq share price has fallen 3.5% to $1.23. This follows a subdued response by investors to the release of an announcement this morning in relation to a new app launch using its technology. The Biomorphik app is now available on both Google Play and Apple Store. It allows people to monitor their bodies closely and pre-empt potential issues before they become prohibitive to the user's health.

Zip Co Ltd (ASX: Z1P)

The Zip share price is down 3.5% to $5.40. This is despite there being no news out of the buy now pay later (BNPL) provider today. However, it is worth noting that short interest is rising strongly. Short sellers appear to be going after the company due to rising competition in the key US market. This follows BNPL launches by giants such as Shopify and PayPal late last year.

The post Why Dacian Gold, Lovisa, MyFiziq, & Zip shares are dropping lower appeared first on The Motley Fool Australia.

The Western Australia-based gold-focused mineral exploration company's shares were up a massive 44% to 12.5 cents before the pause.

Why was the NTM Gold share price rocketing higher?

Investors were buying the company's shares this morning after it announced a merger with fellow Western Australia-based gold miner Dacian Gold Ltd (ASX: DCN).

According to the release, the two parties have entered into a binding scheme implementation deed, under which the two companies will merge by way of a scheme of arrangement.

Management believes the merger will combine two complementary West Australian gold companies, leveraging Dacian's operational expertise and processing infrastructure to unlock the development potential of NTM Gold's Redcliffe Gold Project through regional consolidation.

Under the terms of the scheme, each NTM Gold shareholder will receive 1 Dacian share for every 2.7 NTM shares held at the scheme record date. Based on Dacian's last close price of 35 cents, this equates to ~12.96 cents per share.

Post-merger, shareholders of Dacian and NTM will hold 68.4% and 31.6%, respectively, of the merged company.

What now?

The NTM board unanimously recommends that its shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to an independent expert deciding that the scheme is in the best interest of shareholders.

NTM shareholders, including all directors and the two largest shareholders, Empire Resources Limited (ASX: ERL) and DGO Gold Limited (ASX: DGO), representing a combined voting interest of 32.9%, intend to vote all the shares that they hold in favour of the scheme, in the absence of a superior proposal.

Dacian Gold's Managing Director, Leigh Junk, commented: "This merger will create value by delivering on our strategy of extending mine life, diversifying our production base and increasing operational flexibility at Mt Morgans."

"This is a logical step for Dacian to expand operations in our region by unlocking resources within haulage distance of our substantial processing infrastructure, enabling future resource and reserve additions to be brought quickly into production."

"The merger with NTM creates an industry leading portfolio of advanced exploration targets underpinned by potential high-margin, low capital intensity development opportunities, which would significantly expand Dacian's production profile through the addition of high-grade deposits to our operating plan, further future proofing our business," he concluded.

The post NTM Gold (ASX:NTM) share price rockets 44% higher on Dacian (ASX:DCN) merger plan appeared first on The Motley Fool Australia.

Today's gains will come as welcome news to shareholders, who saw the Dacian share price plummet 71% from 6 January through to 21 July.

Since that low, the share price has regained nearly 27%, but still remains down nearly 61% in 2020. By comparison, the All Ordinaries Index (ASX: XAO) is down almost 10% year to date.

At the current price of 38 cents per share, Dacian Gold has a market capitalisation of $211 million.

What does Dacian Gold do?

As the name implies, Dacian Gold is a gold producer, based in Western Australia. The company's 100% owned Mount Morgans Gold Operation is located in a region containing numerous multi-million-ounce gold mines. Gold production at the mine commenced in March 2018. Mount Morgans is supported by Westralia, consisting of the Beresford and Allanson underground mines, and the company's Jupiter open pit operation.

What's causing the Dacian share price to rocket?

Dacian's preliminary September quarter update stated the company had produced 32,799 ounces of gold for the September quarter. It noted this tracks well against its 2021 financial year guidance of 110,000-120,000 ounces. Most of the gold was sourced from Dacian's Jupiter open pit mine.

Dacian also paid down $25 million of debt in the September quarter. Its total cash and gold on hand as at 30 September stood at $38.5 million. With the company still having a total outstanding debt of $39.1 million, this brings its net debt to $600,000.

Additionally, Dacian's hedge commitment fell by 23,101 ounces, bringing its hedged position to a total of 61,488 ounces at an average price of $2,114 per ounce. That's still considerably below the current market price for gold of $2,657 per ounce, but it's higher than the average price of the company's previous outstanding hedge position.

Addressing the results, Managing Director, Leigh Junk stated:

This is a great start to the financial year and positions Dacian favourably to meet its annual targets during FY2021. The strong operating performance has translated into a much-improved financial position with total debt and hedge commitments further reduced. I'd like to thank the team for their excellent effort and look forward to continuing the momentum at Mt Morgans.

With the company well on track to meet its production targets, and gold forecast to remain strong, the Dacian share price will be one to watch.

The post Why the Dacian Gold (ASX:DCN) share price is soaring 15% higher today appeared first on The Motley Fool Australia.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on them:

Dacian Gold Ltd (ASX: DCN)

According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this gold miner's shares to $1.40. Although Dacian delivered a strong first quarter update which was ahead of expectations, it hasn't been enough for the broker to change its rating. It remains cautious on the company and wants to see it maintain this positive momentum throughout FY 2020. The Dacian share price is up 1% to $1.51 on Friday afternoon.

Netwealth Group Ltd (ASX: NWL)

A note out of Credit Suisse reveals that its analysts have downgraded this investment platform provider's shares to an underperform rating with a $7.60 price target following the release of its first quarter update. According to the note, the broker made the move partly on valuation grounds. It notes that its shares are trading on sky high multiples, which it believes limits upside potential for them. In addition to this, it has concerns over the narrowing of its revenue margin and fears this will hold back its growth. Netwealth's shares have sunk 6% lower to $8.66 on Friday.

Whitehaven Coal Ltd (ASX: WHC)

Analysts at Goldman Sachs have retained their sell rating and $2.90 price target on this coal miner's shares ahead of its quarterly update. According to the note, the broker continues to be bearish on Whitehaven Coal due to the weak outlook for thermal and semi-soft coal. It believes this will weigh on its earnings in FY 2020 and suggests investors look elsewhere in the sector for investments. The Whitehaven Coal share price is up almost 2% to $3.16 this afternoon.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on them:

Dacian Gold Ltd (ASX: DCN)

According to a note out of the Macquarie equities desk, its analysts have downgraded this gold miner's shares to an underperform rating with a $1.20 price target. Although Dacian delivered a stronger than expected full year result in FY 2019, this was largely due to lower depreciation. As a result, this hasn't been enough to stop the broker from downgrading its shares on valuation grounds after a solid share price gain recently. The Dacian Gold share price is down 1.5% on Thursday.

Inghams Group Ltd (ASX: ING)

Analysts at UBS have retained their sell rating and $3.10 price target on this poultry producer's shares. According to the note, the broker believes there are downside risks to its earnings due to rising feed costs caused by the droughts. In addition to this, UBS has concerns over upcoming contract renewals and fears they could be made on less favourable terms. The Inghams share price is up 0.5% to $3.14 on Thursday afternoon. 

Treasury Wine Estates Ltd (ASX: TWE)

A note out of Citi reveals that its analysts have retained their sell rating and $15.60 price target on this wine company's shares. According to the note, the broker continues to believe that Treasury Wine Estates will struggle with its medium term growth targets. This is partly to do with an expected slowdown in sales growth in the China market due to increasing competition. In addition to this, the broker remains cautious on growth in its Americas segment and has previously noted rising grapes costs as a potential headwind. The Treasury Wine Estates share price is up 1% to $19.02 on Thursday.

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Despite the S&P/ASX All Ords Gold index sinking 2.8% lower, this gold miner's shares rose a massive 17% to $1.32.

Why did the Dacian Gold share price rocket higher?

Investors were scrambling to get hold of the company's shares on Monday after it provided an update on its Mt Morgans Gold Operation (MMGO), which is located near Laverton in Western Australia.

According to the release, key operational benchmarks improved during July compared with the June quarter. This led to total ore movement rates across both the underground and open pit stabilising at planned levels in July.

As a result, total mined ore grade at the Westralia underground site increased to 3.5g/t, versus 2.5g/t in the June quarter, as underground productivities across Beresford South, Beresford North and Allanson met expectations.

Looking ahead, management expects MMGO production to be 150,000-170,000 ounces in FY 2020, weighted approximately 45%/55% between the first half and the second half.

Its all in costs are forecast to be between A$1,400 to A$1,500 an ounce, which means that MMGO will be a highly profitable operation if the gold price stays around these levels.

Dacian Gold's executive chairman, Rohan Williams, said: "It is pleasing to start the FY2020 year with a plus 16,000-ounce month, positioning us to meet expectations set with our recently updated Life-of-Mine. Importantly the mill to claimed production reconciliation was excellent at 102%, again confirming the good correlation between grade control models and mill production."

Overall, I've been very impressed with the way Dacian Gold has ramped up production and feel it is a decent alternative to gold mining giants Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST).

The post Why the Dacian Gold share price rocketed 17% higher today appeared first on The Motley Fool Australia.